Ford tells dealers not to advertise Mustang Mach-E under MSRP

[Zelek]

I lol'd.

https://www.autoblog.com/2019/12/04/ford-mustang-mach-e-dealer-advertised-pricing/

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[samd1351]

I read this the other day. If i recall, the author seems to mention that Mustang enthusiasts were upset more than once. And that Ford was indifferent to their feelings.

 

[Deleted member 35644]

Yeah, to prevent bait & switch. And my pet pig just grew wings and joined the geese on their annual trip south. Not that I care, because I'm not buying one, but lies that don't affect me still get under my skin.

 

[oneheadlite]

Seems fair; the opposite way......
Wasn't Dodge forbidding dealers from price gouging the Demon's
when they came out?

 

[Bikeman315]

Seems fair; the opposite way......
Wasn't Dodge forbidding dealers from price gouging the Demon's
when they came out?

Yes they did. Ford should also tell dealers no ADM’s. Wait, I think I see CB’s pigs.

 

[zackmd1]

Ford is trying to make mimic Teslas sales model of direct to customer with no haggling. That ain't going to work when you still have to go to through a dealer.... If these are in short supply and high demand then you bet your a*s at least a few of these will end up with ADM after someone placed an order and went to the dealership to finalize their purchase.

 

[Bikeman315]

Ford is trying to make mimic Teslas sales model of direct to customer with no haggling. That ain't going to work when you still have to go to through a dealer.... If these are in short supply and high demand then you bet your a*s at least a few of these will end up with ADM after someone placed an order and went to the dealership to finalize their purchase.

You never know!

 

[Hack]

I really hope that the dealership model eventually collapses. It's yet another institution that no longer serves a purpose in the modern era. Too bad lobbyists matter more than consumers/voters.

The dealership no longer serves a purpose? That's pretty far fetched.

 

[zackmd1]

The dealership no longer serves a purpose? That's pretty far fetched.

The dealership being a separate entity from the company who's cars they sell. They are an unnecessary middle man between you and the company. They increase end cost and hassle to the buyer. There is something to be said about haggling but at the end of the day, if you could get the car direct from the company at (true) dealer cost then I think the vast majority of people here would be happy.

The auto industry is seeing the writing on the wall in terms of new car pricing and are actively trying to find ways to reduce MSRPs. Eliminating the middle man would be a massive cost savings without having to do a damn thing to the car.

 

[Hack]

The dealership being a separate entity from the company who's cars they sell. They are an unnecessary middle man between you and the company. They increase end cost and hassle to the buyer. There is something to be said about haggling but at the end of the day, if you could get the car direct from the company at (true) dealer cost then I think the vast majority of people here would be happy.

The auto industry is seeing the writing on the wall in terms of new car pricing and are actively trying to find ways to reduce MSRPs. Eliminating the middle man would be a massive cost savings without having to do a damn thing to the car.

Can most car manufacturers afford all that brick and mortar? I don't want to drive to Detroit for warranty repairs, an oil change or to test drive a car. Do you realize how many dealers there are and how much money it would cost for Ford to duplicate all of that infrastructure?

Whether the local entity is independent or a part of the factory, if there are employees, brick and mortar and car inventory it takes money to support all that. Pretty simple stuff really.

 

[Deleted member 35644]

I would definitely vote for ditching the current sales model and morphing dealerships into strictly service centers. I would love to be able to order my car online and have it delivered, but..there are those of us who still insist on looking at, listening to, touching, driving, and smelling a car before it's purchased. I don't see how that's accomplished without a sales staff, and the overhead of a showroom and giant parking lots. I will never buy a car using Carvana methods.

 

[zackmd1]

Do you realize how many dealers there are and how much money it would cost for Ford to duplicate all of that infrastructure?

That is the thing... They do not have to duplicate everything... They do not need a massive sales staff, they do not need a massive store front with sometimes hundreds of cars sitting in the lot. If you move your sales model to a fixed price like a piece of tech, you can sell it online (carvana, Tesla, etc...), something that was not possible up until the 2000s. Brick and mortar dealers would turn into delivery centers/showrooms and service centers. I am not going to pretend to know the cost savings of doing that but I would imagine it being quite a bit cheaper then trying to run a current dealership. Add to that the fact they could probably increase their profit margins on the cars while still offering them cheaper then before, it might just balance out. I have not done any studies to have hard numbers for you but there is a reason why Tesla chose the sales model it did, there is a reason why carvana has become a success and challenger to carmax.

 

[zackmd1]

I would definitely vote for ditching the current sales model and morphing dealerships into strictly service centers. I would love to be able to order my car online and have it delivered, but..there are those of us who still insist on looking at, listening to, touching, driving, and smelling a car before it's purchased. I don't see how that's accomplished without a sales staff, and the overhead of a showroom and giant parking lots. I will never buy a car using Carvana methods.

Tesla does this by having a small demo fleet and an online reservation system for test drives. Add to that a 7 day return policy, and you solved your issue of having to see and feel the exact car you are purchasing before being locked into the sale. Their store fronts are usually manned by 2-5 people at most that handle walk-ins and test drives, ordering is just simply directing you to the online order page.

 

[Hack]

That is the thing... They do not have to duplicate everything... They do not need a massive sales staff, they do not need a massive store front with sometimes hundreds of cars sitting in the lot. If you move your sales model to a fixed price like a piece of tech, you can sell it online (carvana, Tesla, etc...), something that was not possible up until the 2000s. Brick and mortar dealers would turn into delivery centers/showrooms and service centers. I am not going to pretend to know the cost savings of doing that but I would imagine it being quite a bit cheaper then trying to run a current dealership. Add to that the fact they could probably increase their profit margins on the cars while still offering them cheaper then before, it might just balance out. I have not done any studies to have hard numbers for you but there is a reason why Tesla chose the sales model it did, there is a reason why carvana has become a success and challenger to carmax.

Dealers don't need massive sales staffs either. And they would prefer to have smaller sales staffs because it would be fewer people to pay. And dealers would rather have smaller store fronts because that would be cheaper for them.

So do you think dealers are doing things that don't work and don't help them sell more cars? The trends I'm seeing have been towards larger dealers, not smaller.

Your ideas sound fine, but I think the dealers are the experts on what works. They have provisions to sell cars online, but they don't depend on that. If most people bought online, the dealers would be shrinking in size so they could save money. I personally would never commit to buying a car online without looking at it and driving it first. But then I'm an enthusiast - some people might think of the car like an appliance and they might not care if there are blemishes on the car or problems that need to be fixed. Have you bought a car from Carvana?

 

[zackmd1]

Have you bought a car from Carvana?

I have traded into Carvana before but never bought. I would not feel comfortable buying used cars online (especially after seeing what they did and did not list about my traded in car). New cars on the other hand are different IMO. You are buying it to a spec and expect it to be built to that spec. If it is not, 7 day return window.

Obviously I have went through the Tesla process and I would have to say that it was the easiest process I have ever been through with buying a car. The one downside was that it was more drawn out as It took a few days to get credit approval and to get things finalized vs a few hours like in a dealer. Overall though the process was much better than a normal car buying experience IMO and I as able to test drive the model I purchased (not the same vehicle but same spec) before ordering because of their demo fleet.

I can certainly understand how some people would not like this model but given the option, I think the vast majority would prefer the online sales option with no haggling and no sales staff to deal with. Most people in my generation view a car as an appliance as you said, so buying a car sight unseen isn't an issue. I had to test drive and still ensure the 7 day return window applied before I made the commitment to buy.

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